"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today. I will always be grateful to Larry for his tireless work and service on behalf of his country, and I look forward to continuing to seek his guidance and counsel in the future."

Summers' withdrawal letter to Obama noted the expectation of an "acrimonious" confirmation process, amid growing opposition from the liberal wing of the Democratic Party.

Four Democrats on the Senate Banking Committee — which must first confirm the Fed Chair nomination before it goes to the full Senate — had already said they opposed Summers' candidacy. Democrats' preferred candidate is Janet Yellen, the current Fed vice chair.